Colorado: In search of Certified / Professional Opinion of an Appraisal

[alebrewer]

The only time a personal property appraiser would be required to comply with USPAP is if there was an agreement to do so with the client. If they did agree to comply with USPAP, you'd probably find evidence of that in the engagement letter, the scope of work statement, and/or the certification.

 

[Mark K]

As my post showed, I am well aware the appraiser doesn't need a license. But even so, Appraisers for Mobile Homes, license or not, are REQUIRED to adhere to USPAP standards.

As others mentioned, no, personal property appraisers are not REQUIRED to adhere to USPAP unless they agree to and certify that they followed it.

Personal property appraisers can appraise a mobile home and the furniture inside it. I've seen it often and have NEVER encountered one completed to USPAP standards, generally for estates.

If your lender used a personal property appraisal for a real state mortgage, there's a good chance something's going to hit the fan. If your loan is a personal property loan, the lender likely can use anyone with a pulse that claims to be an appraiser for such.

I'm guessing that the appraiser rendered a value that was high enough for you to purchase the MH but you've since discovered that its only worth 50% of what you paid, or less. If the appraiser completed a report in an incompetent manner and the lender didn't question it, there's a good chance that they will renegotiate the loan. Good luck.

MH in this area have very little value unless there is land included. Often, in this area, a local bank will loan (mortgage) on the land and the MH is included as a line adjustment for a vacant land report. Last one I appraised was a 20 ac. parcel worth $300K and it had the MH parked on it included for an additional $10K value.

 

[LostInClifton]

The only time a personal property appraiser would be required to comply with USPAP is if there was an agreement to do so with the client. If they did agree to comply with USPAP, you'd probably find evidence of that in the engagement letter, the scope of work statement, and/or the certification.

I'm assuming it has to do with mortgage requirements that the appraisal be a valid appraisal to validate a mortgage before it's granted? I'm not an appraiser so I don't know why all the appraisers I've spoken with say "Yes, for a mortgage to purchase a mobile home it has to abide by USPAP".

 

[alebrewer]

I'm assuming it has to do with mortgage requirements that the appraisal be a valid appraisal to validate a mortgage before it's granted? I'm not an appraiser so I don't know why all the appraisers I've spoken with say "Yes, for a mortgage to purchase a mobile home it has to abide by USPAP".

It seems there may be a misunderstanding regarding mortgages. For the secondary market (where mortgages are securitized and traded), the collateral for those loans is always real property. Manufactured homes can be either personal property or real property. If they're permanently attached to the ground, tongue & wheels removed, and title forfeited (generally speaking), the taxing authority and/or state will designate the manufactured home as 'real property' (now part of the land). Otherwise, manufactured homes are personal property.

In the world of appraisal, these are two types of specialization - real property appraisal and personal property appraisal. Real property appraisers are regulated by their respective states, all of which that I'm aware of have USPAP compliance baked into the real property appraiser regs. Personal property appraisers aren't regulated by the state and, as such, are not bound by regulation to comply with USPAP.

So in answer to your question, I'd change it a bit to say that for a manufactured home to be eligible for a mortgage, it must be part of the real estate. Otherwise, any debt secured against the home would simply be a loan.

 

[LostInClifton]

It seems there may be a misunderstanding regarding mortgages. For the secondary market (where mortgages are securitized and traded), the collateral for those loans is always real property. Manufactured homes can be either personal property or real property. If they're permanently attached to the ground, tongue & wheels removed, and title forfeited (generally speaking), the taxing authority and/or state will designate the manufactured home as 'real property' (now part of the land). Otherwise, manufactured homes are personal property.

In the world of appraisal, these are two types of specialization - real property appraisal and personal property appraisal. Real property appraisers are regulated by their respective states, all of which that I'm aware of have USPAP compliance baked into the real property appraiser regs. Personal property appraisers aren't regulated by the state and, as such, are not bound by regulation to comply with USPAP.

So in answer to your question, I'd change it a bit to say that for a manufactured home to be eligible for a mortgage, it must be part of the real estate. Otherwise, any debt secured against the home would simply be a loan.

It's listed as a mortgage. I'm looking at these papers. It's also not attached to any land.


Unless this entire sale was fraudulent.

 

[alebrewer]

It's listed as a mortgage. I'm looking at these papers. It's also not attached to any land.


Unless this entire sale was fraudulent.

That I can't help you with. If the manufactured home isn't attached to land, there can be no mortgage (at least not legitimately). Not being mean here, but do you know how to tell the difference between the mortgage instrument and the loan instrument (also called a 'note'). All mortgages will also have a loan, as the mortgage is just the vehicle that secures the collateral. The loan is the document that lays out the terms of the agreement. All loans don't have mortgages, though, as - again - only real property is involved in a mortgage.

 

[LostInClifton]

Dude they call it a mortgage on the paperwork. I don't know what to tell you. Last time I had a credit hit it said I had a mortgage in my name. I dunno what's going on.

 

[alebrewer]

Yeah, sounds like you need to procure the services of a real estate attorney...

 

[Elliott]

Is this "Identity Thief" like the ads on TV?

Lost,
We'd really like to know the whole story. I once did an appraisal on a $1 million property and got a call from the mortgage company and they set up a sting on the day of closing. The buyer also created an escrow company and planned to walk away with $800,000. Instead she went to jail.

 

[KHS445]

Do your documents indicate a mortgage secured by the real estate and then a title or UCC lien on the dwelling? Check with the local Assessor to see how they are recognizing the property. They may be able to clear up whether the dwelling has been declared to be permanently affixed to the real estate.